The exchange rate of the Syrian pound rapidly strengthened against the US dollar recently after the international community agreed to resolve the chemical weapon crisis within the United Nations framework.

The Syrian pound showed more than 20 percent appreciation against the US dollar within days, standing at 162 pounds on Tuesday for one dollar, the first ever positive sign in weeks.

Expecting further recovery of the Syrian pound, Syrians who have turned their savings into dollars in the past two years rushed to sell their dollars and other currencies before further fluctuations in the exchange rate.

The Syrian authorities also closed a considerable number of foreign exchange companies in Damascus, as part of its campaign that started a couple of months ago, aiming to put dealers in order.

According to local media, government sources predicted that the exchange rate will reach 130 Syrian pounds for one dollar within a short period, thanks to the positive policies taken by the central bank and the overall encouraging political climate, mainly the US -Russian agreement and the forthcoming Geneva conference that aims to bring together representatives from the Syrian government and opposition.

Also, the Central Bank of Syria (CBS) has allowed, for the first time, foreign exchange companies to trade the dollar at the market price but it should be below the price set by the central bank with a margin profit of one percent.

Abed Fadhliyah, a professor at the Faculty of Economics at the University of Damascus, told the local Syrian Days website that the dollar's weakness against the Syrian pound is a natural result of the quiet political climate, as well as the punishment on money dealers.

CBS Governor Adib Mayaleh said that there are certain psychological factors. "The Syrians today are relieved, and this is part of the causes that affect the exchange rates," he said.

He stressed that Syria is now reaping the fruits after a series of decisions made by the central bank several months ago helped recover the economy.

"We have been calling on the people to wait till they see the results of the policies and decisions that have been taken in this respect, and these results are appearing today," he said, adding that the psychological factor is "positive but it is conjugated with the important decisions and monetary policies that begin to bear fruit today."